American Financial Benefits Center on the Benefits of Debt on the Economy and IDRs on Federal Student Loan Borrowers

EMERYVILLE, Calif., April 17, 2018 /PRNewswire/ -- Debt is often considered a bad word, often in personal finances. However, debt can help the economy grow. For example, car loans put money into the car industry, which benefits all the workers in the auto supply chain. Credit card purchases keep food, travel and retail industries going. Student loans can boost earning potentials of borrowers, which can translate to higher taxes paid and more consumer spending. American Financial Benefits Center (AFBC), a document preparation company that helps its clients with application paperwork to remain in federal repayment plans, reminds borrowers that even though debt can help the economy, they should manage their own debt and do what they can to avoid financial pitfalls.

"Taking on debt may benefit the economy, but paying it off benefits individuals," said Sara Molina, manager at AFBC. "Student loan borrowers may feel like there's no way that their debt can be good. But what they may not realize is that they might be able to make their student loans work for them in their financial goals."

A recent article outlined the benefits debt can have on the economy. The author also balanced a well-established hesitance to take out any form of debt, which speaks to the negative connotation that debt has in our society. After all, debt, if handled poorly, can hold Americans back. To balance the factors at play, perhaps individuals should walk away with the mindset that debt is okay as long as they can manage it well.

The first step to managing debt well is not falling behind. Individuals may adopt the financial goal to pay off all their debts, and that may require establishing a plan. If student loans, which are often the second-largest expense in a household, are too high, borrowers may consider looking into federal income-driven repayment plans. Such plans calculate payments based on income and family size. Any reduction in payments may free up funds to go toward other financial goals.

"At AFBC, we have helped our clients with the first steps toward taking control of their federal student loans," said Molina. "We help them with the annual recertification paperwork as well so they can stay in the program and not be surprised by high payments that can get in the way of their financial goals."

About American Financial Benefits Center

American Financial Benefits Center is a document preparation company that helps clients apply for federal student loan repayment plans that fit their personal financial and student loan situation. Through its strict customer service guidelines, the company strives for the highest levels of honesty and integrity.

Each AFBC telephone representative has received the Certified Student Loan Professional certification through the International Association of Professional Debt Arbitrators (IAPDA).

Contact

To learn more about American Financial Benefits Center, please contact:

American Financial Benefits Center
1900 Powell Street #600
Emeryville, CA 94608
1-800-488-1490
[email protected]

Related Links

AFBC home page

SOURCE American Financial Benefits Center